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Investigations

Date

Former CEO of Virginia Regional Transit Sentenced to Jail and Ordered To Pay Over $800,000 Related to Bribery Scheme

On September 9, 2016, Mark W. McGregor, of Charles Town, West Virginia, was sentenced in U.S. District Court, Alexandria, Virginia, for his role in a bribery scheme that caused $380,000 in losses to the U.S. Government. He was sentenced to 18 months’ incarceration and 24 months’ supervised release, and was ordered to pay $380,000 in restitution, $380,000 in forfeiture, and a $50,000 fine. He previously pleaded guilty to bribery in May 2016. 
 
According to court documents, McGregor served as the chief executive officer of Virginia Regional Transit (VRT), a nonprofit organization that provides transportation services throughout Northern Virginia. VRT is funded by a combination of Federal, State and local grants, including DOT funds. McGregor engaged in a bribery scheme with coconspirator Thomas Ahalt, then president of Mobile Auto Truck Repair (Mobile Auto), Purcellville, Virginia, which provided automotive repair services to VRT. 
 
From January 2007 through December 2015, Mobile Auto submitted—and McGregor caused to be approved—false invoices for additional weekly labor charges. McGregor then approved and VRT paid to Mobile Auto approximately $380,000 for those fraudulent labor charges. A portion of the monies VRT paid to Mobile Auto were Federal funds from the Federal Transit Administration. In exchange, McGregor received regular kickback payments from Ahalt and others associated with Mobile Auto, totaling approximately $190,000. 
 
DOT-OIG conducted this investigation with the FBI.